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Minutes 01-10-23 Minutes of the Community Redevelopment Agency Board Meeting Held on Tuesday, January 10, 2023 at 6:00 PM City Hall Chambers, 100 E. Ocean Avenue and GoToWebinar Online Meeting Present: Ty Penserga, Chair Thuy Shutt, Executive Director Angela Cruz, Vice Chair Timothy Tack, Assistant Director Woodrow L. Hay Kathryn Rossmell, Board Counsel Thomas Turkin Aimee Kelley 1. Call to Order Chair Penserga called the meeting to order at 6:00 PM. 2. Invocation The Invocation was given by Board Member Hay. 3. Pledge of Allegiance Chair Penserga led the Pledge of Allegiance to the Flag. 4. Roll Call Vicki Curfman, Administrative Assistant, called the roll. A quorum was present. 5. Agenda Approval A. Additions, Deletions, Corrections B. Adoption of Agenda Chair Penserga requested to move item 12C to before 12A. Board Member Turkin requested to add a discussion about creating a CRA Beautification Department to Future Agenda. Motion Vice Chair Cruz moved to approve the agenda as amended. Board Member Hay second the motion. The motion passed unanimously. 6. Legal None. Meeting Minutes CRA Board Meeting Boynton Beach, FL January 10, 2023 7. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosures of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Board Members Hay and Turkin had no disclosures, but both gave kudos to the committee for the Boat Parade. Vice Chair Cruz, Board Member Kelley, and Chair Penserga had no disclosures. 8. Announcements and Awards A. Rock the Plaza at Ocean Plaza Mercedes Coppins, Business Promotions and Events Manager, announced the Rock the Plaza event, to be held on January 28, 2023, at Ocean Plaza. 9. Public Comments A. The public comment section of the meeting is for public comment on items that are not on the agenda. For items on the agenda, the public will be given an opportunity to comment at the time each item is considered. Each speaker will be given a total of three (3) minutes to comment; however, the Board retains the right to reduce the number of minutes prior to the start of public comment. Persons making public comment may not assign or donate their public comment time to another individual to allow that other individual additional time to comment; however, any persons requiring assistance will be accommodated as required by the Americans with Disabilities Act. Prior to addressing the Board, please go to the podium or unmute your device when prompted, and state your name and address for the record. Chair Penserga opened Public Comments. No one came forth to speak. Chair Penserga closed Public Comments. 10. Consent Agenda A. CRA Financial Report Period Ending December 31, 2022 Motion Vice Chair Cruz moved to approve the Consent Agenda. Board Member Kelley second the motion. The motion passed unanimously. 11. Pulled Consent Agenda Items None. 2 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 10, 2023 12. Old Business Item 12C was heard out of order. C. Update by the City of Boynton Beach on the Temporary Suspension of the Neighborhood Officer Program (NOP) Captain Steven Burdelski stated the position was posted and nine (9) responses were received initially, with two (2) applicants withdrawing their candidacy for personal reasons. The interviews would be conducted beginning January 19, 2023, and candidates would then be ranked. The top four (4) or five (5) candidates would then meet individually with Executive Director Thuy Shutt. Board Member Hay requested a citizen on the interview board. Captain Burdelski replied that it would need to be approved by the Chief. A. Discussion and Consideration of an Alternative Meeting Date for the March CRA Board Meeting Ms. Shutt stated the two meeting options are either March 15 or March 20 at 6:00 P.M. She noted, despite the election, they would still have three sitting CRA Board members to run the meeting. Chair Penserga asked if the two newly elected members were legally permitted to attend the meeting. Attorney Rossmell stated it would depend on the certification date and they cannot provide clear direction at this point. Public Comments: Chair Penserga opened Public Comments. Ernest Mignoli, 710 NE 7th Street, stated what was done in the past was problematic. He noted no one from the public attends the CRA meetings. He spoke about deaths, stabbings, shootings, and drugs in the community. Chair Penserga closed the Public Comments. Motion Board Member Turkin moved to approve March 15. Board Member Kelley second the motion. The motion passed unanimously. B. Discussion and Consideration of a Purchase and Development Agreement with Pulte Home Company, LLC for the Cottage District Infill Housing Redevelopment Project 3 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 10, 2023 Ms. Shutt introduced the item and noted staff were authorized to begin negotiations with Pulte Home Company, LLC. She stated they brought back revisions on September 13, 2022, based on Board direction. She briefly described the project location and reviewed the income ranges for the units. She continued by displaying renderings and reviewed the terms that were negotiated. She noted the layout includes a pocket park, which has now been relocated to the NE corner of the project. She asked the Board whether they liked the location or would like to see an alternative design. She added that the terms require the park to be open to the public. She noted Andrew Maxey and Eliot Goldstein from Pulte were available by phone. She continued by reviewing additional Purchase and Development Agreement terms. She highlighted the general project timeline, and noted Pulte feel confident then could complete within two years. Mayor Penserga stated he looked forward to partnering with Pulte. He noted the housing would be truly affordable. He asked for clarification on the HOA structure and estimated fees. Mr. Goldstein said the HOA would be as low as possible but there were no final figures. He stated they would share documents during the final site plan approval process. He estimated approximately $200 a month but they hope for much less. He stated the HOA would be tiered with an amount for the single-family home and an amount for the townhomes. Board Member Hay asked if the HOA fee would be separate or part of the mortgage. Mr. Goldstein said typically the HOA fee was separate from the mortgage. Board Member Hay inquired if the CRA Board would have an opportunity to review the HOA fee structure prior to final approval. Mr. Goldstein said they would be happy to share the document and solicit feedback from the Board. Board Member Hay asked about fees for HOA violations. Mr. Maxey replied once they sell the last unit, they would turn over the HOA to the community and resident control. He reiterated their goal of a low HOA fee. Board Member Turkin asked if the Delray Beach project is similarly structured with an HOA. Mr. Maxey said no since there was no common area in the Delray Beach project. Board Member Turkin supported keeping costs as low as possible and asked if Pulte could play a role in developing a contract with the HOA to limit costs for a time period. Mr. Maxey said they would make sure the operating budget was in good shape when they turn it over. Board Member Kelley said the HOA in this neighborhood makes her uneasy. She stated it feels like a neighborhood within a neighborhood. She recommended a limited HOA. Mr. Maxey replied there are changes they could look into to make to limit the HOA Board power but could not confirm specific changes. Board Member Hay asked about the HOA responsibilities. Mr. Goldstein said the HOA would be responsible for the common areas, pocket park, dry retention area, and streetside 4 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 10, 2023 landscaping. Mr. Maxey further spoke about private road repairs, privately maintained drainage connections to Seacrest Boulevard, and insurance. Chair Penserga opened a discussion about the location of the pocket park. He asked if they move the park internally would the project receive additional units. Mr. Goldstein said if they moved the park internally, the dry detention area would need to be moved to the current pocket park area. Mr. Maxey stated they may gain one (1) additional unit. Mr. Goldstein said they are open to other ideas, and he noted Pulte's preference would be to remove the pocket park and offer additional units. Chair Penserga was not in favor of removing the park. Board Member Kelley stated she is fine with the park remaining but expressed concern that it adds to the HOA fees. She preferred the park was moved centrally within the project and not by the edge by the road. Board Member Turkin said amenities are important and spoke about adequate fencing and landscaping to mask the fence. Vice Chair Cruz spoke about affordability and AMI and the public park. She asked Ms. Shutt about the decision from the previous Board about the park. Ms. Shutt confirmed the prior Board wanted the park to be accessible to the public, so Pulte honored that in the current design. She noted if access was restricted then it would not be maintained by the City. Vice Chair Cruz said it was not fair for private owners to pay for a public park. She asked Pulte why the park was moved to the current location and recommended the location move south closer to 4th Avenue. Board Member Hay recommended utilizing the funding for the park and redistribute it to the open space. He suggested landscaping, walkways, and grills. He does not want to burden the residents. He prefers removing the park, adding more units, and enhancing the central open space. Mr. Goldstein summarized what he heard from the Board, including removing the park, increase housing, and enhancing features of the open space. Vice Chair Cruz asked about the dry retention area. Mr. Goldstein said it would be landscaped but would not look like a lake. Ms. Shutt said it would be sloped and seeded and are like a swale but larger. She added small portions of the area could be carved out for walkways or benches. Mr. Goldstein said they are open to foregoing the park or reducing the park size based on the entitlement process. He stated Pulte would add features to make the community feel special. He confirmed the HOA fee would be reduced and offset by the one (1) additional unit. 5 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 10, 2023 Vice Chair Cruz asked if it was possible to create a lake. Mr. Goldstein said if it was possible based on setbacks and entitlements, they are open to the idea. Mr. Maxey added they would know more once they get into the entitlement and permitting process. Timothy Tack, Assistant Director, asked if they would entertain an ex-filtration trench to offset the dry retention area. Mr. Goldstein said they would not be open to ex-filtration because it would be difficult for the HOA to maintain it. He acknowledged they would be open to alternative ways to handle the pre-treatment. Vice Chair Cruz requested to go to 40-60% of AMI or to increase units in that tier in lieu of the park. Mr. Goldstein said no and explained their goal is to stay within the County guidelines. Board Member Turkin said the lake was a good idea, the park was important, and supports a walkway around the dry retention area but mentioned the challenge of privacy. He asked how many units they would gain by removing the park. Mr. Goldstein said one (1) unit. Board Member Kelley said she was not a fan of the park but liked the pathway idea around the dry retention area. She does not love the idea of a lake and expressed concern about drowning. Chair Penserga asked each Board Member to indicate whether they would like the park or to add an additional unit and some additional amenities to the open area. Board Member Hay said he was in favor of removing the park and adding more units. He did not support a lake. Vice Chair Cruz stated she was in favor of removing the park but recommended creating two townhomes instead of a one single-family home. Mr. Goldstein stated they would do their best to maximize the units. Board Member Turkin supported eliminating the park and recommended keeping HOA costs down with a minimal approach to the other features in the open area. Board Member Kelley stated she agreed with removing the park. She asked Pulte to look outside of the box to add additional townhomes that qualify under the lower AMI. Consensus was reached to remove the park, maximize the number of units, and work with staff to develop the features for the open space. Attorney Rossmell stated that recommendation may affect two other conditions of the agreement. It affected the condition of the 52% limit on the total number of townhome units. Vice Chair Cruz clarified that she meant MFI when she was indicating AMI and again asked if Pulte would consider 40-60% MFI. Ms. Shutt clarified the MFI chart. 6 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 10, 2023 Board Member Turkin said the Board previously discussed more single-family homes and less townhomes. Mr. Goldstein said they support increasing the number of townhome units on the east section. He said they were flexible on many things, but they would need to stay within the workforce housing categories outlined on the chart. Board Member Kelley said she would like to see new options and asked how to change that in the agreement. Ms. Shutt said the percentage would probably remain approximately the same with the new options discussed. Vice Chair Cruz recommended seeing the new options from Pulte and then they could decide to amend the agreement. Mr. Goldstein asked if the request to bring back visuals of new options would push out the signing of the purchase and sale agreement. Chair Penserga recommended flexibility in language concerning the 52%. Board Member Hay reminded the Board they originally wanted detached single-family units but noted Pulte did a nice job with the design. He supported moving forward. Attorney Rossmell noted another condition about the interior and perimeter streetscaping. She recommended adding flexibility to that condition as well. Consensus was reached to bump up the percentage of units by a point or two and adjust the interior and perimeter streetscaping, as needed. Consensus was also reached to authorize the Chair to work with Legal to finalize the project. Chair Penserga asked about the resident selection process. Mr. Goldstein referenced Section K of the agreement. He stated it was a lottery process and outlined the timeline for the County process. He noted they would develop an educational program and a website and described how residents would get approved. He said Pulte would manage the sales process and described how the lottery process worked on a Delray Beach project. He stated they would do two lotteries, first for 20 units and the second lottery for the remaining units. He noted eligible residents are not required to be in attendance. Board Member Kelley asked if they would do a similar website to their Delray Beach Carver Square website. Mr. Goldstein replied yes. Discussion continued about the application process and lottery. Vice Chair Cruz asked if any homes could be preferential for Boynton Beach residents. Mr. Goldstein said no because there are Fair Housing rules. Vice Chair Cruz recommended marketing it to Boynton Beach residents first and limited the application period. Mr. Goldstein responded that the marketing to lottery would be approximately a 2-3-month period. Ms. Shutt asked how many applications they received for the Delray Beach project. Mr. 7 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 10, 2023 Goldstein said 80-100 eligible residents were in that lottery for 20 units. Board Member Hay asked about impact windows and shutters all the way around. Mr. Goldstein said they would commit to impact windows. Board Member Hay asked who oversees the HOA. Mr. Goldstein said they would be governed by their by-laws. Discussion ensued about HOAs. Board Member Hay asked if the electrical wires would be buried. Mr. Goldstein replied yes. Public Comments: Chair Penserga opened Public Comments. Ernest Mignoli, 710 NE 7t'' Street, stated he attended every meeting about the project and said he is concerned that the Board does not understand HOAs and Fair Housing laws. He noted the project is comprised on city, county, and state laws. He said the neighbors did not object because they were promised a public park and now that has been eliminated. He stated the Police would have access to the public road within the project. He noted HOAs and crime are both frightening. Chair Penserga closed the Public Comments. Attorney Rossmell noted she would read into the record any changes that deviate from the paper that was supplied tonight. If the changes are not accepted, the agreement would come back before the Board. Chair Penserga asked for final comments and questions. Vice Chair Cruz asked about 23.29 (c) Reverter Clause and Repurchase. She recommended a language edit to protect the CRA in the event of potential default after construction begins. Mr. Goldstein said Pulte would agree to capping the raw land value would be capped at what they paid plus the verifies land development costs. Board Member Hay asked about the one-year warranty and Pulte's responsibility. Mr. Goldstein confirmed the one-year warranty. Board Member Turkin and Vice Chair Cruz thanked Pulte. Chair Penserga emphasized the CRA was getting $2.5 million from this project. Motion Vice Chair Cruz moved to approve the purchase and development agreement as presented subject to the following changes: elimination of the requirement that a pocket park be included as that requirement may exist throughout the agreement; enhancement of the dry detention area; the HOA documents will be provided to the CRA for informational purposes and 8 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 10, 2023 comment prior to site plan approval; increase, if possible, the number of townhomes based on the space made available as the result of the park removal; adjustments to the percentage of the townhomes, if necessary; adjustments to the streetscape requirements limited it to single-family if necessary; impact windows on every unit throughout the development; in the event of a conflict and the LOI and agreement as negotiated then the contract will prevail; under the reverter clause, as pertaining to subsection C, prior to completion of the last dwelling unit, the price will be the lesser of the raw land value, as calculated as of the date of the agreement, the proportionate share of that lot, plus verifiable land development costs, or, on the other hand, the appraised value of the land as if exists as of that date; and subject to final legal review. Furthermore, the motion would further authorize the Board Chair to execute the agreement upon inclusion of these changes. Board Member Hay seconded the motion. The motion passed unanimously. 13. New Business A. Discussion and Consideration of a Tax Deed Sale for the Property Located at 543 NW 11th Avenue Ms. Shutt introduced the item and asked the Board to determine a maximum price for bidding. She said staff recommended a limit of$80,000. She confirmed there are some liens and state taxes associated with the property. Theresa Utterback, Development Services Manager, said their research revealed code liens and the City has it designed for demolition. She noted the code liens would be reduced to Admin Fees. Attorney Rossmell said there were some state tax liens that would not be wiped out by the sale, and it would include interest. Board Member Hay expressed concern about not knowing the additional costs. Attorney Rossmell said they may know the costs at the time of the title search, but she would have to follow up. Ms. Shutt said they would rather participate in the bid and have a cap on it. Ms. Utterback said they need to provide money to the Tax Appraiser's Office three days prior to the auction. She added the tax deed goes to auction January 18, 2023. Chair Penserga said it was not comfortable acquiring the property at this time. Board Member Kelley asked if there was any protection or could they cancel the sale without much penalty. Ms. Shutt said they would not have enough time to gather additional information after the winning bid. Attorney Rossmell confirmed full payment is due the next day. Discussion ensued about the liens and potential costs. Board Member Kelley stated there are too many unknowns. Board Member Hay said there was too much of a risk and does not support the item. 9 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 10, 2023 Vice Chair Cruz agreed it was too risky. Board Member Turkin did not support the item. Consensus was reached to not act on the item. B. Discussion and Consideration of the Purchase of 334 NE 11th Avenue Ms. Shutt introduced the item and reviewed the property. She stated it was appraised at $275,000 and there were City liens. She asked the Board to determine a maximum amount to pursue purchase. She spoke about future opportunities with the purchase of nearby lots. Board Member Hay stated this purchase supports the overall objective of development along MLK Boulevard. He was in favor. Vice Chair Cruz said the larger lot makes more sense. Ms. Shutt said the lots are the same size. She said they could back to the Claytons and offer their original asking price or$305,000 for each. Board Member Turkin does not want to go above appraised value. Board Member Kelley asked if the liens were paid in the May 2022 sale. Ms. Utterback said there was old work completed on the property without permits. Board Member Kelley stated they should try to acquire the property. She recommended negotiating under the appraised value due to the liens. Todd Michaels, the property owner, introduced himself. He stated the $305,000 price was firm and clarified that there were no liens on the property. He read the violations items outlined in the inspection letter and noted the other items were to obtain permits for the unpermitted work that was done prior to his purchase. He reiterated his bottom line and confirmed it was a rental property. Ms. Shutt asked about the tenants. Mr. Michaels stated the current lease expires on June 30, 2023. Mayor Penserga stated he was uncomfortable with the live negotiating and reminded the Board they typically give direction to staff for negotiations. Board Member Hay was not in support of moving forward. Vice Chair Cruz stated she was not in support. Board Member Kelley said the rental aspects changes the dynamic of the property as it was not vacant. She was not in support. Consensus was reached to not move forward with the item. 14. CRA Projects in Progress 10 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 10, 2023 A. CRA Economic & Business Development Grant Program Update B. Social Media Marketing Update C. MLK Jr. Boulevard Corridor Mixed Use Project (d/b/a Heart of Boynton Village Apartments) Update Mr. Tack provided an update on the item. He showed progress images, including interiors. Chair Penserga asked about the cleanliness and safety of the project. Ms. Shutt said a member from the management team visits the site weekly to ensure all protocols are followed. Board Member Kelley stated the progress was amazing. She also asked about project assignments for the CRA Advisory Board. Ms. Shutt said the RFP/RFQ was delayed, and they would be bringing it back to the Board in February. Board Member Kelley asked if there were other properties or land the CRA Advisory Board could review. Ms. Shutt said they typically wait until they have 3-4 properties for the CRA Advisory Board to review. Ms. Shutt confirmed they had no tasks to assign them at this point. Board Member Turkin recommended identifying what updates they want to hear at the beginning of the meeting so individual staff members did not have to remain until the end of the meeting. Vice Chair Cruz said the project was great. She asked about advertising for the project. Ms. Shutt replied that the Centennial would not entertain applications until 120 days before the Certificate of Occupancy. She noted they can begin marketing when they receive the information from the developer. Board Member Hay shared an incident at that complex. He noted the pipefitters cut the cable on 9th Avenue and left the hole open with a live wire. He connected with the Centennial staff and the problem was resolved the next day. 15. Future Agenda Items A. Discussion and Consideration of the Responses to the RFP/RFQ for the CRA- owned Property located at 401-411 E. Boynton Beach Boulevard — February B. Social Media Outreach Program 1st Quarterly Report (October — December 2022) — February C. Semi-Annual Progress Report for the Development Agreement with Wells Landing Apartments, LLC d/b/a Heart of Boynton Shops — March D. Semi-Annual Progress Report for the Purchase and Development Agreement with Wells Landing Apartments, LLC, d/b/a Heart of Boynton Village Apartments — March 11 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 10, 2023 16. Adjournment Motion Board Member Hay moved to adjourn. Vice Chair Cruz seconded the motion. The motion passed unanimously. There being no further business to discuss, the meeting was adjourned at 9:35 P.M. (10 AZ, '44 Tammy Sta ione, CMCY Deputy City Clerk 12